In the Kidokinetics franchise agreement, what is the purpose of the 'Statement of Ownership Interests in Franchisee' section?

According to the 2024 Kidokinetics Franchise Disclosure Document, the 'Statement of Ownership Interests in Franchisee,' detailed in Attachment D of the franchise agreement, serves to accurately and completely describe the ownership interests in the franchisee. This means Kidokinetics requires a clear record of who owns the franchise and in what proportion. This information is crucial for Kidokinetics to understand the structure of the franchisee's business and to ensure compliance with the franchise agreement terms.

Furthermore, the franchise agreement stipulates that the franchisee must immediately inform Kidokinetics of any changes in ownership. This obligation ensures that Kidokinetics always has an up-to-date record of the franchise's ownership. The franchisee must also make a list of its owners available to Kidokinetics at any time upon request. This provision allows Kidokinetics to verify ownership details whenever necessary.

This requirement is typical in franchising, as franchisors need to know who their franchisees are and who controls them. It allows Kidokinetics to assess the character, skills, and financial capacity of those involved, as these factors are critical to the success of the franchise. It also enables Kidokinetics to monitor compliance with the agreement and to address any issues related to ownership or control of the franchise.